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MANILA, Philippines – The House of Representatives makes good on its promise to give employees a merry Christmas this year.
Voting 250-0, the House on Friday, September 26, approved on 3rd and final reading House Bill 4970, which seeks to increase the tax exemption ceiling for bonuses and 13th month pay from P30,000 to P70,000.
This bill amends current laws that only cover tax exemptions for Christmas bonuses, 13th month pay and other benefits for up to P30,000. Any amount higher is subjected to tax.
The bill now awaits action at the Senate, where a similar bill has been filed by Senator Ralph Recto.
In a Senate ways and means committee hearing on December 2013, Internal Revenue Commissioner Kim Henares expressed misgivings about the bill, saying that an additional tax exemption would hurt the economy if no additional taxes are imposed to compensate it.
But House committee on ways and means chairperson and Marikina City Representative Miro Quimbo earlier argued that raising tax exemption caps would increase the purchasing power of employees. – Rappler.com